The rising cost of digital ads

One of the biggest challenges facing brand owners in the digital commerce landscape revolves around navigating the ways and means to market their products and services to their potential clientele on a global scale more effectively. 

As consumers’ preference for digital media consumption heightened, digital ads put out by businesses proved to be a bountiful and fertile venture initially. However, this shift in consumer preference inevitably increased both the demand for and the cost of online advertising, and compounded by the existence of the pandemic, the price of digital ads would only skyrocket further. 

As Digital Information World suggests, “the pandemic in 2020 kicked enormous demand for digital ads, and greater demand with the same level of supply inevitably [led] to increasing prices [for ads].” 

With that being said, how can a brand owner like yourself implement a more cost-saving digital marketing method to ensure that your ads reach your target audience?

Long Tail Interest Targeting, and how it can help you grow your business

When it comes to targeting, it is safe to say that many of us apply generic mass targeting for our ads, which allows us to reach a larger audience and guarantees results. That being said, according to the concept of long-tail distribution, “large items” or “big ticket” items do not always necessarily produce the best results at the best prices. Therefore, due to the behavior of long-tail products, if a brand can take advantage of the “tail-end” of the distribution, they could potentially discover and attain more outstanding success for their business. 

Like the illustration of the Apatosaurus above, long-tail targeting takes place at the tail-end of the dinosaur as opposed to its head (where big ticket interests are situated), thereby moving away from the overly saturated portion of the spread and focusing on the more niche interests of potential customers. By doing this, your brand will be able to collect smaller targeted audiences that would then accumulate into a much larger customer base in the end. 

For example...

Let us say that your brand is focused on selling “sports shoes,” which is the interest you are targeting to reach potential customers. However, at the very same time, plenty of other brands, such as Nike and Adidas, are also using popular generic interests such as “running shoes” to market their sports shoes to customers. 

While this form of targeting would potentially net you the most traffic to your brand, it would also place your business in direct competition with Nike and Adidas. This would ultimately make it more costly for your digital marketing campaign to gain impressions, as the ad visibility on Social Media and SEM platforms will eventually be given to the company that bids the highest on this targeted term. 

But what if there was an alternative way for your brand to reach your target audience by bypassing the costly “big ticket” interests? 

Human Beings as complex individuals with varying interest

Every individual on the planet has a plethora of interests that define who they are, providing brand owners with an alternative route to reach their customers. 

To continue on from our sports shoes example, let us imagine that individuals who are interested in “sports shoes” are also interested in “kayaking” and “scuba diving”. This new development of understanding your customers’ other interests may allow your brand to reach said customers by targeting these low-competition interests instead, as companies selling kayaking services or scuba diving gear may not necessarily be shelling out lots of money for their digital ads. 

The fact that these interests are registered as “low-competition” is a smart method for your business to reach your potential customer base at a much lower cost than if you were to only focus your efforts on the “high-competition” interests. 

Therefore, by understanding and accumulating data based on your customers’ varied interests, you can certainly employ a more cost-effective means of marketing your products and services to your potential clientele through long-tail interest targeting. 

SoMin.ai

However, as beneficial as this strategy may be, it is no secret that most brands deal with thousands, if not millions, of customers at any given time. Hence, understanding this kind of granularity, tailored to each specific customer, is an extremely taxing affair and, dare we say, humanly impossible. This is why interest targeting may come across as not being very popular amongst various businesses despite this form of targeting having enormous potential and control, as it is often perceived as a tool that is too cumbersome to be taken advantage of. 

This is why we created the platform, SoMin.ai, a machine capable of deciphering customers’ interests so businesses can truly take advantage of interest targeting. 

How SoMin can take your business even further

According to the Institute of Entrepreneurship Development (iED), “artificial intelligence has already changed the way brands communicate with customers and how marketing campaigns are managed”. In short, having access to an AI that works for your business can be a valuable asset in reaching your target customer base and bringing about greater conversions for your brand. 

This is precisely what SoMin.ai can do for your business—and more. Through its implementation of long-tail interest targeting, SoMin’s AI solutions will aid your company in compiling all the long-tail interest data of potential customers, develop effective digital strategies with said data, optimize your ad campaigns, and provide an increased return on investment. 

Increasing customer acquisition for Citibank CEE without raising their cost per lead or blowing their marketing budget

This unique strategy is evidenced by SoMin.ai’s successfully run campaign for Citibank Central Easter Europe (CEE), whereby its algorithm dove deep into the bank’s audiences with its proprietary Omni-Sourced User Profiling, targeting users through the utilization of long-tail interest targeting. This strategy proved fruitful for Citibank CEE, allowing a 43% cheaper cost per lead, 53% more conversion clicks, and twice as many leads. 

Read more about this case study here. 

Hence, regardless of where your brand falls into the broad spectrum of the business world, you can rest assured in knowing that SoMin.ai’s algorithm of long-tail interest targeting will be beneficial for your brand’s digital marketing campaigns should you choose to partner with us today. 

Conclusion

The digital marketing space is a complex ecosystem that requires a tremendous amount of finesse in order to navigate to reach potential customers. That being said, through a more comprehensive understanding of long-tail interest targeting and the utilization of artificial intelligence platforms like SoMin.ai, your brand will be able to comprehend your customers’ interests and behaviors better, resulting in greater leads and conversion rates for your business in the long run.